Question
Last year, Tractor Suply Co. paid dividends of $1.66 per share and had earnings of $4.15 per share. Acme intends to maintain this payout rate
Last year, Tractor Suply Co. paid dividends of $1.66 per share and had earnings of $4.15 per share. Acme intends to maintain this payout rate in the future. Analysts forecast that Tractor Supply Co. will sustain a constant growth rate of 3.5% forever. If the price is currently $38.85, what is the trailing P/E ratio? What is the expected return on Tractor Supply ?
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
